New 2017 Ontario and Toronto Municipal Land Transfer Tax Rates

The new City of Toronto Land Transfer Tax Rates which are effective March 1, 2017 are as illustrated below. The City has decided to harmonize their rates with the recently announced Ontario, Provincial Land Transfer Tax changes. The difference between the City and the Ontario Provincial rules is that the City’s changes do not include grand-parenting provisions to exempt transactions that are initiated prior to March 1, 2017.

In addition to the changes in the Toronto Land Transfer Taxes, also effective for all conveyances and dispositions made on or after March 1, 2017, the maximum rebate for eligible first time purchasers will increase from $3,725.00 to $4,475.00 (i.e. first $400,000.00 consideration is not subject to the tax). The City has also amended the eligibility of the first time home buyer rebate to Canadian citizens or permanent residents of Canada (to be consistent with the provincial rules).

RESIDENTIAL

Ontario Provincial Land Transfer Tax, Maximum First Time Home Buyer Rebate Amount: $4,000.00

CONSIDERATION

FORMULA

Up to $55,000.00

x .005

$55,000.01 to $250,000.00

x .01 – $275.00

$250,000.01 to $400,000.00

x. 015 – $1,525.00

$400,000.01 to $2,000,000.00

x .02 – $3,525.00

$2,000,000.01 and up

x .025 – $13,525.00

Toronto Municipal Land Transfer Tax, Maximum First Time Home Buyer Rebate Amount: $4,475.00

CONSIDERATION

FORMULA

Up to $55,000.00

x .005

$55,000.01 to $250,000.00

x .01 – $275.00

$250,000.01 to $400,000.00

x .015 – $1,525.00

$400,000.01 to $2,000,000.00

x .02 – $3,525.00

$2,000,000.01 and up

x .025 – $13,525.00

Note: For new residential construction HST is to be backed out of the purchase price prior to the calculation of Land Transfer Tax.

Jeff Levy is the managing partner at Levy Zavet PC, Lawyers. Mr. Levy is an experienced Ontario-based lawyer practicing primarily in the areas of real estate, mortgages, corporate law, corporate finance, mergers and acquisitions, joint ventures, tax law, commercial finance and estate planning. His primary role is serving as a trusted adviser to businesses of all sizes including corporations and family-owned or private businesses. Mr. Levy has represented companies doing business in many different areas including mortgage investment corporations (MICs), mortgage funds, mortgage brokerages and administrators, professional corporation, land development, condominiums, software development, construction, intellectual property, trademarks, patents, retailing, distribution, manufacturing, banking, consulting and other professional service fields.
Mr. Levy’s experience includes advising start-ups seeking guidance on how to structure their businesses, counseling established companies looking for new sources of capital to fuel their growth, and assisting mature family-owned companies planning for transfer of the business to the next generation. His experience and training in business law also provide him with the background to counsel his clients on private equity transactions, venture capital and financing issues; joint ventures and strategic business relationships; software development contracts, licensing agreements and other technology issues; sales and distribution matters; and employment issues and executive compensation arrangements. He also provides advice on buying a business for those starting out or expanding their existing operations and counsels others on selling their business or exit strategies.
In addition to his regular corporate and business law experience, Jeff Levy also brings more than six years of experience to his real estate law practice. He has represented clients ranging from first time home buyers to condominium developers in the areas of residential and commercial closings, land development and assembly, condominium development, condo corporations and the condo act, Tarion Home Warranty claims, Title Insurance claims, and more. Jeff Levy greatly enjoys advising and counseling on mortgages and mortgage transactions. Everything from setting up and ongoing compliance with Mortgage Investment Corporations (MICs), mortgage brokerages, mortgage administrators, mortgage syndication, private mortgages and complex deal structuring. Jeff Levy is extremely experienced in drafting complicated mortgage loan agreements and structuring multi-collateral, diverse payments and elaborate recovery provisions in every unique situation. His long history of experience in mortgage enforcement, power of sale, and foreclosures, has given him the knowledge to foretell viable exit strategies at the loan origination stage of almost every single mortgage deal.
Jeff Levy also has significant experience in protecting intellectual property rights, and has extensive knowledge of laws related to trademarks, copyrights, know-how and trade secrets, through combinations of registrations, contractual restrictions and licensing agreements..

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